A Company Has Net Income of $5

Multiple Choice

A company has net income of $5.6 million.Stockholders' equity at the beginning of the year is $32.55 million and,at the end of the year,it is $38.15 million.The only change to stockholders' equity came from net income.The return on equity ratio is approximately:

A) 0.15.
B) 0.16.
C) 0.87.
D) 6.64.